Updated November 2021
Today’s gig economy gives everyone a chance to create a side hustle in a variety of ways.. One common example of a side hustle – or a way to make some extra cash – is in food delivery services such as Postmates, Uber Eats, GrubHub, or DoorDash. These side hustles require you to work hard, but also work smart, which will help you earn more!
Nowadays, thanks mainly to delivery apps, you can transform your vehicle into a money-maker. (Even if you don’t own a vehicle, you can use apps such as HyreCar and transform someone else’s vehicle into your money-maker.) Since the pandemic has changed the way we shop and consume goods, this has opened the door for many gig jobs including food delivery, rideshare, or grocery. People are also renting vehicles for professional services such as travel nurses and medical transportation.
In 2020, Uber purchased Postmates to be part of its Uber Eats platform. Now both apps are combined into one, making it a seamless experience for the drivers and consumers.
Postmates vs Uber Eats – Driver Requirements
The requirements to become eligible as a driver with Uber Eats or Postmates are quite simple and straightforward. It does mostly depend on how you would like to deliver – you can choose between a car, a scooter, or on foot or bike. All applicants for Postmates are now sent to the Uber site to create an Uber Eats driver account. A SSN number will be required to submit for the background check.
Vehicle Delivery: Must meet minimum age to drive in your city.
Scooter: At least 19 years old
Bike or Foot: 18 years old.
Uber Eats requires all vehicle delivery drivers to have a vehicle that meets Uber requirements for their city, which vary depending on location.
In order to deliver food with Uber Eats, you must first pass a preliminary background check upon applying to become a member of the fleet. The exact elements of the background check vary from state to state and city to city, depending on local laws and ordinances. The background check typically involves a Motor Vehicle Report. Any disqualifying restrictions applied to your driver’s license, any major driving violations, or a recent history of multiple minor driving violations could result in disqualification.
Additionally, Uber Eats (and Postmates as well) requires a criminal background check, subject to state and local law, which is conducted by the accredited third-party background check provider Checkr, Inc. Any conviction for major or violent crimes such as murder, sexual assault, or terrorism will result in disqualification. A conviction for a felony offense will also result in disqualification.
Both Uber Eats and Postmates require their drivers to be eligible to work in the US (or in the country they plan to work in). And as their respective customers will place the order using the companies’ apps, the candidates for delivery drivers must possess a smartphone.
Postmates vs Uber Eats – Delivery Equipment
Postmates used to send drivers an insulated tote bag when you sign up as a delivery person. The bag is small and won’t accommodate larger orders, but depending on the frequency of deliveries you make, you can request a replacement bag every month.
Uber Eats, on the other hand, has stopped giving out delivery bags. Instead, they sell them online. An insulated bag can cost from $15 to $25. The Uber Eats branded bags cost between $40 and $75.
Postmates vs Uber Eats – Customer Fees
Both Postmates and Uber Eats have had a rather complex system of service fees – both for their customers and for their delivery persons. Postmates would charge a delivery fee, which fluctuates depending on the distance between the pick-up point and the drop-off point. The minimum delivery fee is $5, though sometimes there are special offers in certain areas with lower delivery fees. 80% of the delivery fee goes to the delivery person and the rest, 20%, went to Postmates.
In addition to the delivery fee, Postmates also charged its users a “Convenience Fee” of 9%, while Uber Eats charges a “Service Fee” of 15% of the subtotal of a user’s order. Uber Eats has a habit of changing their fees, so this information is not written in stone.
The total amount a user pays for the delivery service depends on a number of factors – local taxes, place the user is ordering from, their location, total amount of the order.
Postmates vs Uber Eats – Calculating Earnings
Now that the two companies have combined, their earnings formula has become much more simplified.
Postmates and UberEats calculate its fees based on four factors: Pick up, Drop off, Time, and Distance. All of these fees vary from location to location. All users can also tip their delivery driver and the driver will keep 100% of it.
Additionally, drivers can earn bonuses. These bonuses also fluctuate depending on market values.
Boost – An added bonus to make sure each trip taken is worthwhile.
Surge – taking delivery orders in busy areas with high demand.
Nowadays, drivers keep 100% of the tips that are contributed to them just the same way as if it were cash. All delivery people will be able to see all the tips they have earned in their earnings tab on the app.
Types of Products Delivered
You can now order anything from UberEats or Postmates such as restaturaunt food, groceries, alcohol, and an assortment of products that are added to the app all the time.
The Bottom Line
The amount you earn delivering food with Uber Eats will depend on a number of fluctuating factors – your location, the time the order is placed, distance covered, promotions, tips, etc..It has become common for most drivers that are on Uber and Uber Eats to also have a DoorDash account. Not all restaurants sign up for all the same apps, therefore it is common for drivers to have both and field more delivery calls.
How Much Can You Expect to Earn?
Drivers report that they can average between 2 and 6 deliveries per hour and make between $4 and $7 per delivery. Naturally, deliveries are mostly made around midday for lunch orders and in the evening for dinner orders and late-night grub. You also need to factor in fuel costs and other costs associated with your vehicle. Plus, you need to file for taxes as an independent contractor at the end of the year.
Reports of earning vary wildly, but enough people are doing it for extended periods of time which should lead us to assume they are earning enough money to make it worth their while.
How to Offset High Vehicle Costs
In addition to taxes and fuel, there are other costs that should be factored in when trying to calculate expected earnings. There is vehicle insurance and, perhaps the greatest cost and the one most difficult to calculate, vehicle depreciation. Essentially, this means that the more you use your car, the less it’s worth.
However, there is a way to offset this cost – use someone else’s car.
With the HyreCar app, you simply select a car from the available options in your area at a set daily, weekly, or monthly rate. You can then begin making deliveries with Uber Eats. You will still need to pay for fuel.
Instead of personal driver’s insurance, once you rent through HyreCar, you will benefit from commercial ridesharing insurance offered by HyreCar. HyreCar offers the most fluid rental process allowing you to rent, pick up, and drop off a vehicle on-demand. This allows our renters to work when it’s best for them and not rent when they don’t need to.